Uber and an Indian government-backed corporation have inked a memorandum of understanding to improve mobility and trade in South Asia.
Uber said Thursday that it would investigate partnerships with Open Network for Digital Commerce (ONDC) to enhance its mobility options on the Uber app. At an event in Bengaluru, Uber CEO Dara Khosrowshahi said Uber “views open source tech stacks with a lot of interest and recognizes the opportunities they bring for everyone.”
“We are excited to take our first step through this MoU with ONDC to explore how we can accelerate our ambition to make Uber a platform for every Indian’s daily mobility needs,” said Uber India and South Asia president Prabhjeet Singh.
Uber and ONDC did not disclose collaboration information. Uber will first connect to the ONDC network as a buyer application for interstate bus and metro train tickets, Eltrys exclusively reported.
The ONDC aims to disrupt the country’s fast-growing e-commerce and mobility industries. In 2021, ONDC launched an open platform to democratize online commerce by connecting consumers and sellers across marketplaces, making it easier for small shops to reach customers. ONDC entered mobility last year.
Despite making progress, ONDC has struggled with big-name involvement. Amazon and Flipkart have indicated interest in joining the open network, but their participation is restricted.
MTT (mobility, transport, and travel) is crucial to us as the Open Network evolves. According to ONDC managing director and CEO T. Koshy, network players collaborate to innovate and create new business models. “Today’s MoU is a major step forward, and we hope it will enable a diverse range of mobility solutions for every Indian.”
ONDC is striving to make the network self-sustaining and attract major corporations. In an interview with Eltrys, Koshy said the ONDC board was considering charging certain participants a marginal charge.
“It should be negligible and counteract current business… He said that the price model will be completed in a month and disclosed in a few months to avoid burdening tiny emerging firms.
Uber is expanding in India, a vital market. Uber sold UberEats to Zomato in 2020, competing with SoftBank-backed Ola in India. On Thursday, a smiling Khosrowshahi joked about reestablishing food delivery throughout the nation.
He called India one of the hardest-hit markets. The “Indian customer is so demanding and doesn’t want to pay for anything,” he said.
Uber will investigate India’s open commerce network for travel tickets
